Chapter 15, Problem 1.1E

To determine

Introduction: Governmental bodies deal with the general fund. This fund is answerable for most of the easy transactions of a governmental body. The accounting procedures used for governmental bodies provide an understanding of fund accounting and current governmental accounting standards. It allows one to formulate journal entries for public funds, indicate how to report for encumbrances, and formulate fund financial statements for the public fund.

To choose: The correct answer from the given options.